Verge (XVG) Pumps (and Dumps) on Bithumb Listing

Justine Pope

Even though the cryptocurrency markets are still in a bearish trend, some altcoins have been seeing upwards price movement. As bitcoin’s USD price has stabilized over the past week, some analysts are suggesting that altcoins could start seeing some much-needed price action. One example is Verge (XVG).

Originally called DogeCoinDark, XVG was recently awarded listing on Bithumb. Bithumb is the third largest exchange by volume, racking up 415,000 BTC (or approximately $1.6 billion) in 24-hour trading volume. This listing is the only market for XVG/KRW, meaning that users of the South Korean exchange Bithumb will be able to buy XVG with their KRW for the first time. Verge is already listed on Bitfinex, Binance, and Bittrex, but this Bithumb listing gives even more people access to XVG.

Bithumb tweeted about the Verge listing at 6:05 PM on November 28, 2018:

Data from CryptoCompare shows that this listing has given Verge a turbulent week.  Before the announcement, XVG’s price was consolidating around $0.006. The price started climbing up, and once the listing was live, jumped all the way up to $0.010, for a gain of 67%. The hype quickly died off, and after a small double top, the price tumbled down to $0.0073, for a drawdown of 27%.

hour_CryptoCompare_Index_XVG_USD_337_11543583205413.pngFrom: CryptoCompare

Like most cryptocurrencies, 2018 has not been fun for Verge. Before the 2017 bull run, XVG’s price was consistently around $0.007, until its privacy features started gaining attention in cryptocurrency circles. Then, infamous cryptocurrency promoter John McAfee started tweeting about XVG, and Verge began its rapid ascent in price.

XVG saw an enormous surge all the way up to $0.24, but since the bear market started, it’s crashed all the way back down to its 2017 levels around $0.007. Despite this, Verge has kept its footing and remains the 46th largest cryptocurrency by market cap, with a valuation of $112.5 million.

day_CryptoCompare_Index_XVG_USD_366_11543583698403.pngFrom: CryptoCompare

Crypto Market-Maker Altonomy Receives $7 Million in Funding from Polychain Capital

Altonomy, a New York-based cryptoasset trading, advisory, and asset management company, has completed a $7 million fundraising round from Polychain Capital, a leading hedge fund and venture capital firm.

Co-founded by Ricky Li, a former Manager of Research and Product at the CME Group, Altonomy has also received funding from 7 Blocks.

Additional Capital Will Allow Altonomy to Have More Inventory

Commenting on how the additional capital could help Altonomy’s business operations, Li said: 

As a liquidity provider for altcoins, more funding will allow us to have more inventory, taking larger exposure and managing risk more effectively.

Li added that the extra funding would allow Altonomy’s trading desk to provide better services - as the platform would not need to “put constraints” on customers at settlement.

Funds May Be Used to “Source Liquidity for Customers”

Olaf Carlson-Wee, the Founder and CEO at Polychain Capital, remarked:

As a long-time user of Altonomy’s trading services, it was an easy decision for us to invest in their business when the opportunity became available.

Carlson-Wee, a former Product Manager and Head of Risk at Coinbase, also mentioned that the additional funding would help “source liquidity for customers, regardless of token type, order size, market cap, or whether the asset trades on centralized or decentralized exchanges.”

According to Coindesk, Li had suggested to investors in January 2019 that they “liquidate enough ETH so they would have at least two years of runway.” However, Li is now anticipating that cryptocurrency prices may continue to recover - after enduring a long bear market that lasted throughout 2018.

Altonomy Introduces Cloud Service for Crypto Mining

In addition to providing crypto trading and asset management services, Altonomy introduced a new product last year, called the AltMiner. According to Li, AltMiner’s cloud service allows Altonomy’s bigger investors to mine various cryptocurrencies.

Altonomy’s management claims that the AltMiner has a “superior return profile” with the “newest generation of miners, low electricity costs and a secure hosting site.”

During an interview with CryptoGlobe in May 2019, Lee explained how Altonomy’s crypto trading services were developed and their potential benefits.

One of Altonomy’s main services, called electronic execution, allows mining firms, investment companies and crypto exchanges to “enter and exit positions as an outsourced execution desk.”

As a high-frequency market-maker, Altonomy also provides liquidity for various tokens to several crypto spot and derivatives trading platforms.